Seoul [South Korea], November 6 (ANI): Samsung Electronics Co. announced on Thursday that it has completed the acquisition of FlaktGroup, Europe's largest air handling and heating, ventilation, and air conditioning (HVAC) company, as per a report by Pulse, the English service of Maeil Business News Korea.

In May, Samsung Electronics signed an agreement to acquire a full stake in FlaktGroup for 1.5 billion euros (USD 1.7 billion).

'FlaktGroup supplies central air conditioning products and solutions to homes, offices, schools, hospitals, and industrial facilities across 65 countries, generating more than 700 million euros in annual revenue. It is recognized as a top-tier global HVAC company. Through the acquisition, Samsung Electronics aims to strengthen its capabilities in the HVAC market, which is rapidly expanding amid surging demand for global artificial intelligence (AI) infrastructure,' the report said.

AI data centers must process massive volumes of data around the clock in real time; thus, they consume significant amounts of electricity and require advanced cooling systems for heat management.

The data center cooling market is expected to grow at an annual average of 18 per cent, reaching USD 44.1 billion by 2030.

'Samsung Electronics plans to leverage FlaktGroup's core infrastructure and network to develop new HVAC solutions, gradually integrating the two companies' products and services to maximize synergies. Samsung Electronics, in particular, plans to actively target large-scale hyperscale data centers in Korea and position itself as a leading supplier in the next-generation data center sector,' the report said.

The electronics giant will also expand sales and service capabilities in major global markets with strong industrial HVAC demand, such as North America and Europe, covering large factories, hospitals, and biotech facilities.

FlaktGroup operates more than 10 production bases worldwide and has an extensive sales and service network across Europe, the Americas, the Middle East, and Asia.

It also owns subsidiaries such as Woods, which specializes in ventilation for tunnels, ships, and defense applications, and SEMCO, focused on air conditioning and fluid solutions.

'This marks a strategic move for Samsung, aimed at leading the global HVAC and data center markets,' the report quoted Roh Tae-moon, president and acting head of the Device eXperience Division at Samsung Electronics. 'By merging FlaktGroup's technological expertise with Samsung's AI platforms, we aim to set a new benchmark in the industry, delivering innovative solutions to customers.'

Samsung Electronics plans to maintain the Flakt brand after the acquisition, allowing its current management and employees to continue operating the company as an independent subsidiary to preserve its expertise and brand identity. (ANI)